The move comes after the shipping firm formally ended its relationship with its pervious insurer, London P&I in the past weeks. COSCO obtained permission from the China Insurance Regulatory Commission to form an insurer on its own in December last year.

The newly created unit is the first captive shipping insurer in China, and it will provide a range of insurance services to China COSCO and its different affiliates.

According to Wan Min, general manager of China COSCO, having a captive insurance firm is a major milestone for the company, and that it is part of its strategy to expand into financial services, as well as provide a new income stream for the group.

China COSCO’s fleet has 1,114 vessels with a capacity of 85.3 million dwt, making it one of the largest shipping companies in the world.